New York, NY (Oct. 27, 2014) – Guy Carpenter & Company, LLC, the leading
global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies,
has announced the release of the 2014 Insurance Risk Benchmarks Research: Annual Statistical Review, the first in a two-part
series detailing research executed in collaboration with Columbia University. This, the fourth annual
report, provides detailed analysis and insight on the property/casualty industry to help insurers
strategically evaluate and benchmark inputs to economic capital models.

With increased global regulatory supervision over the enterprise risks of insurance companies,
effective and efficient economic capital modeling has become increasingly essential to insurance
executives. The Insurance Risk Benchmarks research provides metrics and insights to allow clients
to understand if they are accurately quantifying risks by line of business, by industry segment and
across cycles. The risk benchmarks are based on proprietary analyses of a database of financial
results from thousands of property/casualty (P&C) insurance companies over a period of more than
thirty years. This year’s research also refines the industry market segments to include regional
composites designed to better group companies with similar exposure to natural perils.

The second report, Applications and Perspectives, will be available to clients in December 2014 and
will include papers that will each examine best practices in risk appetite and tolerance, Own Risk and
Solvency Assessment (ORSA) readiness across the industry, results and analysis on the P&C
industry capital model, and advanced modeling research.

“As detailed in this year’s report, relatively low natural peril activity, impressive returns on the stock
market, benefits from deferred tax assets and changes to pension accounting all contributed to the
strong financial results seen in the 2013 property/casualty market,” said Micah Woolstenhulme,
Manager, ERM Services Team for Guy Carpenter. “Whether we are in a soft market, where the
industry shows the greatest volatility, or in a more stable hard market, the Insurance Risk
Benchmarks Research provides vision into the insurance landscape so that companies are able to
assemble a complete image of risk and opportunity for their business.”

Key top-line findings of the research include:

The insurance industry exhibits the greatest volatility during soft markets and the least volatility during hard markets.

Reserve releases continued throughout 2013 as the industry recorded the largest release of the most recent accident year since 2007. Ultimate loss estimates were reduced for each historical accident year since 2004.

Correlation between lines of business is strongest at the industry level and noisiest for small individual companies, but a company’s experienced correlation can be modeled as a function of market share.

Companies have been successful at achieving rate increases and industry written premiums grew by 4.4%. Top gainers include Workers Compensation (8.2%), Commercial Auto Liability (7.7%), and Products Liability (6.9%).

Regional players have generated the lowest volatility in most lines of business.

Booked loss ratios for accident year 2013 are lower than the long term average for every line of business.

Homeowner’s volatility is uncorrelated with other lines and driven by natural peril profile and geographic footprint. The underwriting cycle is much less pronounced. Large, multi-regional companies have outperformed regional players and the key to stable profitability is regional diversification and risk management.

The lines of business with the largest difference between winners and losers include Medical Malpractice and Products Liability.

“Our research goes beyond a simple annual industry update,” said Joel Vaag, Principal, Oliver
Wyman, Actuarial Consulting. “The Insurance Risk Benchmarks research and subsequent reports
are compiled as a living exercise in industry risk management that grows and creates new value with
each installment. The depth and breadth of this analysis arms our clients with actionable intelligence
to recognize risk and seize opportunity.”

The full Insurance Risk Benchmarks: Annual Statistical Review is available from gccapitalideas.com.

Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across 25 countries,
Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk
management, and organization transformation. The firm’s 3,000 professionals help clients optimize their
business, improve their operations and risk profile, and accelerate their organizational performance to seize the
most attractive opportunities. For more information, visit www.oliverwyman.com.

About Marsh & McLennan Companies

Marsh & McLennan Companies (NYSE: MMC) is a global professional services firm offering clients
advice and solutions in the areas of risk, strategy and human capital. Marsh is a global leader in insurance
broking and risk management; Guy Carpenter is a global leader in providing risk and reinsurance intermediary
services; Mercer is a global leader in talent, health, retirement, and investment consulting; and Oliver Wyman
is a global leader in management consulting. With annual revenue exceeding $12 billion, Marsh & McLennan
Companies’ 55,000 colleagues worldwide provide analysis, advice, and transactional capabilities to clients in
more than 130 countries. The Company prides itself on being a responsible corporate citizen and making a
positive impact in the communities in which it operates.
Visit www.mmc.com for more information.

*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US
registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212)
345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities
(Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade,
Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC
Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan
Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument,
reinsurance or insurance product.

**GC Analytics is a registered mark with the U.S. Patent and Trademark Office.